Top Performer's Top Picks

When it comes to performance,
Louis Navellier leads the pack. Among newsletter advisors,
he has the enviable position of being at the top of Mark
Hulbert's 20-year performance rankings. Here, we take a look at some of his
current favorite stock picks.

"Wall Street is so stressed about so many different things that it
hasn’t noticed that cash flow and corporate profits are at record highs," says
Louis Navellier, in his Emerging Growth Letter. "The analyst community on Wall Street is grossly underestimating
the market’s earnings this year. Earnings momentum for the S&P 500 will accelerate
for the remainder of the year. The small- and mid-cap arena is even more
attractive than the S&P 500 due to stronger earnings growth and lower P/Es.

"I must confess that I can’t predict the weather, but I’m pretty
good at picking which stocks are going to have the strongest sales and earnings
growth. Although the overall market may be floundering, this is a wonderful
environment for good stock pickers. Our Buy List is well-positioned to benefit
from institutional buying pressure. The average stock on the Buy List has very
strong sales and earnings growth, combined with a low P/E ratio. Here are our
three top-rated stocks:

"

NutriSystem (NTRI NASDAQ)
saw its latest quarterly earnings jump 470%, while sales rose 346%. The company
also raised its full-year revenue target to $150 million to $155 million, which
is a substantial increase over analysts’ expectations of $109 million. The stock
is an outstanding buy. NTRI is a thinly traded micro-cap that should be
approached with caution, so please only use limit orders! Buy below $27.

"

CNS Inc. (CNXS NASDAQ)
makes the Breathe Right nasal strip, which holds nasal passages open to help
improve breathing. In the past four quarters, the company’s sales have increased
over 26%, but its earnings have soared 1,350% due to dramatically expanding
operating margins. The stock is a great buy. CNXS is a thinly traded micro-cap
stock that should be approached with caution, so please only use limit orders!
Buy below $30.

"

Sociedad Quimica y Minera de
Chile S.A. (SQM NYSE)
recently announced that its second-quarter earnings nearly doubled due to higher
prices and higher demand for fertilizers and industrial chemicals. The company
is hoping that the growing trend in the use of battery-powered tools will help
drive its sales of lithium and derivatives, which are already up 50% so far this
year. The stock is a great buy below $130."

In his Blue Chip Growth Letter,
the advisor adds,"This was the fourth quarter in a row when
energy-related stocks posted the best earnings
of any industry group, and it’s no coincidence that most of our top
buys now are energy companies. We want to ride these companies as long
as they have the best earnings. That’s been the case for the last year and
should be for the foreseeable future. Here
are our latest three top buys:

"Kinder
Morgan (KMI
NYSE) operates more than 35,000 miles of natural
gas pipelines throughout the US. It also recently announced that it is
buying Terasen in Canada for $3.1 billion to expand into the lucrative
Alberta tar sand business that Terasen operates. Overall, KMI should be a wonderful addition to our
Buy List. This is our first natural gas pipeline company, and you can’t
have enough Canadian tar sand plays. I’m putting KMI in the conservative category. Buy
below $99.

"PetroChina (PTR
NYSE)
produces two-thirds of China’s oil and gas. That’s saying something. It has proven reserves of
11 billion barrels of oil and 32.5 trillion cubic feet of
natural gas. The company also owns or has interests in a huge
number of gas stations—more than 15,000. It is only a matter of time before demand
does soar, and PetroChina will be the obvious winner. PTR is attractively valued at
the moment, trading at barely 11 times forecasted earnings—despite posting almost 48%
earnings growth in the past year—and has an extremely attractive growth to P/E ratio. It’s a
conservative buy under $88.

"Sunoco
(SUN
NYSE) operates five refineries, which have a combined processing
capacity of 900 thousand barrels of crude oil a day, as well
as 4,300 miles of pipelines and 38 terminals. The firm markets its gasoline through more
than 4,800 retail outlets, primarily in the Northeast and upper Midwest. SUN shows
no signs of slowing down, and you just can’t have enough refinery
stocks in your portfolio right now. Oil prices may continue to gyrate, but refineries
are poised to post strong earnings regardless of the price of oil. SUN is a
moderately aggressive buy under $68."